Savings 3. Let us help you think about tomorrow today.

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1 Savings 3 Let us help you think about tomorrow today.

2 Select your individual path to achieve your savings objective Savings 3 with Zuger Kantonalbank is the individual savings plan that is not only an important way to supplement the so-called 1st pillar (state old-age and invalidity insurance schemes AHV/IV) and 2nd pillar (occupational and accident insurance schemes IV/UVG), but also offers numerous interesting advantages. The goal of the dedicated provisioning (pillar 3a) is, together with the 1st and 2nd pillar, to preserve the accustomed standard of living in retirement and to finance further individual requirements such as early retirement. In addition, with this state-promoted pension scheme you can also close any gaps in provision, benefit from tax relief and build up your assets faster thanks to attractive interest rates and/or an investment in securities. At the same time, you can make flexible deposits up to a specified maximum amount and withdraw or pledge capital before you retire in order to acquire residential property. The three-pillar concept 1st pillar 2nd pillar 3rd pillar Securing your basic needs State pension Maintaining your accustomed standard of living Occupational provision Individual needs Private pension provision State old-age / invalidity insurance Supplementary benefits Occupational pension scheme Accident insurance scheme Tied pension provision 3a Free-access pension provision 3b Tied pension provision (pillar 3a) means that, in contrast to free-access pension provision (pillar 3b), you may withdraw your pension savings prior to retirement only under certain conditions. For this reason it also enjoys preferential tax treatment. 2

3 Overview of the benefits Zuger Kantonalbank Savings 3 offers you a comprehensive service covering the following needs: Use the Savings 3 account to build up retirement assets and save taxes. Build up retirement assets with securities savings, save taxes and invest. Build up retirement assets, save taxes and provide security with the Swisscanto Safe savings target insurance policy. Saving 3 account Securities saving Swisscanto Safe saving target insurance policy Savings 3 account Asset growth thanks to attractive interest rates Save taxes Flexible payments up to the maximum amount Capital can be used for purposes such as acquiring residential property Securities saving under the pillar 3a scheme Building up assets through attractive investments Opportunity to generate higher long-term returns Independent investment strategy with individual risk classification Professional asset management Swisscanto Safe savings target insurance policy Savings target guarantee Individual risk protection in the event of death or incapacity for work Security for the family Attractive risk premiums 3

4 Think about tomorrow today You can benefit from the advantages of tied pension provision if you have an income that is subject to AHV contributions 1). Your savings plan can be individually structured according to your current situation in life and future plans. Make flexible deposits Adjust the level of your annual deposits in accordance with your current financial situation. For employed persons with a pension fund the maximum annual deposit is CHF ). In the case of dual-income couples, both spouses may deduct their pension contributions from their taxable income. Employed persons without a pension fund may deposit up to 20 % of their earned income but no more than CHF ). Save taxes, year by year With Savings 3 you can enjoy tax relief every year. In addition to the income tax deduction, withholding tax, wealth tax and income tax on interest income are also waived. When the sum is paid out, tax is levied at a reduced rate and separately from your other income. The following examples show you what impact retirement savings can have on your budget. 1) Continuation beyond OASI retirement age is possible under certain conditions. 2) As a rule, these maximum sums are reviewed by the Federal Council every two years. This information is current as of

5 Examples of annual tax savings in Swiss francs Taxable income Total taxes (federal, cantonal, municipal, church) Tax savings per annum Without Saving 3a With Saving 3a Without Saving 3a With Saving 3a CHF CHF CHF 6200 CHF 5373 CHF 827 CHF CHF CHF CHF 9358 CHF 1262 CHF CHF CHF CHF CHF 2026 Assumptions used in the calculation: Employed person with a pension fund, deposit of CHF 6 768, married, two children, Catholic, resident in Zug (tax rate canton / municipality / church for 2016) Use your Savings 3 capital in special personal circumstances The capital is tied up until five years before you reach the regular (AHV) retirement age. However, you can still draw on your Savings 3 capital: to buy or build your own home to pay off a mortgage on your own home to take up a self-employed activity to emigrate permanently abroad to buy into your pension fund (2nd pillar) in the event of full disability Partial withdrawals may be made only to finance residential property (every five years). 5

6 Are you planning to finance your own home? The Savings 3 scheme is also attractive for younger savers as it gives them the opportunity to make an early with drawal or pledge Savings 3 assets in order to buy their own home. If you already own your own home, you can use the annual deposit sum to pay off the mortgage debt indirectly or pay off existing mortgages with the Savings 3 capital. Do you want to generate higher returns with securities saving? If you are keen to generate higher returns, you should combine the Savings 3 account with securities saving. Depending upon your personal investment objective and risk appetite, the following investment funds are available to you: ZugerKB retirement savings funds Brief description * ZugerKB Fonds Strategie Konservativ (CHF) BV The equity allocation is around 25 % ZugerKB Fonds Strategie Ausgewogen (CHF) BV The equity allocation is below 50 % Investment groups Brief description ** Swisscanto BVG 3 Portfolio 10 R Equity component: approx. 10 % Swisscanto BVG 3 Portfolio 25 R Equity component: approx. 25 % Swisscanto BVG 3 Portfolio 45 R Equity component: approx. 45 % Swisscanto BVG 3 Oeko 45 R Equity component: approx. 45 % Swisscanto BVG 3 Dynamic 0 50 R Equity component: approx %, target volatility: 5 % Swisscanto BVG 3 Index 45 R Swisscanto BVG 3 Life Cycle 2015 / 2020 / 2025 R Equity component: approx. 45 % (passively managed) The equity component may not exceed 50 % until ten years before the target date. It is then reduced to 0 % until the target date is reached, while at the same time the bond and real estate components are increased. * Precise details about ZugerKB investment funds (strategy funds and retirement savings funds) can be found at ** Please see detailed information about the individual investment groups at 6

7 Do you want to safeguard your pension provision? Combine the Savings 3 account with the Swisscanto Safe savings target insurance policy and receive optimum risk protection for your family. Pension in case of incapacity for work If you become unable to work, the Swisscanto Safe savings target insurance policy pays the Savings 3 deposits to you in the form of a pension. Choose between the maximum annual Savings 3 sum permitted by law or a fixed sum based on your requirements. Lump sum payable at death The insurance policy covers the difference between the savings target that you have chosen and the Savings 3 capital that you have already accumulated. The insured lump sum payable at death is paid out immediately in the event of the insured person s death together with the Savings 3 capital. Do you have any questions? Contact us for further advice. We are looking forward to showing you just how flexibly and individually you can build up your retirement assets. Simply give us a call: +41 (0)

8 This brochure is printed using a carbon-neutral process Zuger Kantonalbank Baarerstrasse Zug Phone Fax service@zugerkb.ch